Classification of goods— The subject appeal has been filed against order passed by advance ruling authority.

The applicant has sought clarification before the lower authority in respect of following activities—

Question— Whether the sale of produces Distillery Wet Grain Soluble ('DWGS') and Distillery Dry Grain Soluble ('dDgS') -'Cattle feed' undertaken by the applicant is covered under serial no 102 of Notification No. 02/2017 -Central Tax (Rate) dated 28 June 2017 and whether these commodities are exempt from payment of GST?

Both the commodities fall under S.No. 104 of Notification No. 01/2017 and are taxable at the rate of 5%.

Issue in brief is that the applicant is engaged in manufacture of alcohol. In the process of manufacturing alcohol, certain by products emerge viz., distillery dry gain soluble (DDGS) and distillery wet rain soluble (DWGS). It was the contention of the applicant that these are sold as cattle feed, hence exempted from tax under GST Under Sl.No. 102 of Notfn No. 02/2017-CT(R), dt.28.6.2017. However, the lower authority, vide the impugned order, has held that the impugned goods fall under Sl.No. 104 of Notfn No. 01/2017-CT(R), dt. 28.6.2017 and attract GST @ 5%, they being brewing or distilling dregs and waste, whether or not in the form of pellets.

Aggrieved by the ruling, the applicant filed the present appeal. They contended that the classification of the goods is to be arrived at based on end use of the product. Since their product is used as cattle feed, the same is exempted from GST. However, the plea of the applicant is not tenable in view of the fact that the impugned product is a by product of brewing or distilling activity. Only end use of the product could not be a criterion for arriving at a classification. Further, when a specific entry under a notification is available, the same will override the general entry in a notification. Since in this case, Sl. No. 104 of Notfn No. 1/2017-CT(R) covers brewing or distilling dregs and waste, the same will override the entry at Sl.No. 102 of Notfn No. 2/2017-CT(R), dt. 28.6.2017.

Held that— The order passed by the lower authority is upheld.